Redfin

JULY 30, 2025

They require higher credit, lower debt-to-income ratios, and more assets. Stricter qualifications: Because these loans carry greater risk, lenders require higher credit scores, bigger down payments, and lower debt-to-income ratios. Loan limits vary by state and county. What is a jumbo loan?

Loans

Redfin

JUNE 13, 2025

If your score is lower, focus on paying down debt and improving your credit before applying. Debt-to-income ratio: This compares your monthly debt payments to your gross income. If your ratio is higher, explore loan options like VA or FHA loans that accept higher DTIs.

Debt-to-income ratio

Marco Santarelli

MAY 27, 2025

The rate you ultimately secure will depend on factors like your credit score, income, debt-to-income ratio, and the size of your down payment. But in September, the central bank announced a first rate cut of 0.50 Get quotes from multiple lenders, including banks, credit unions, and online mortgage companies.

Mortgages

Rochester Real Estate

NOVEMBER 5, 2015

Whether you work with a mortgage broker or a bank , they will also consider your PITI when evaluating your ability to repay the loan, using metrics such as housing expense and debt-to-income ratios. It is essential to factor in changes in taxes and insurance over time when assessing your ability to make mortgage payments.

Debt-to-income ratio

Marco Santarelli

MARCH 6, 2025

The central bank even started to hint at potential rate cuts. Many buyers today are also banking on the idea of refinancing down the road. Do you have a solid down payment, good credit, and comfortable debt-to-income ratio? In 2024, we saw a bit of a breather.

Mortgages

Redfin

MARCH 5, 2025

Below are some of the best ways to find an affordable home without breaking the bank. Review your savings for your down payment , monthly income, and potential loan options to set a realistic price range. Maintaining a low debt-to-income ratio and a strong credit score can also enhance your eligibility for favorable mortgage terms.

Debt-to-income ratio

The Mortgage Report

JULY 24, 2025

For example, the FHA requires that it be a true gift with no implication of repayment of funds to the donor, and many times this needs verification of receipt such as a bank statement or wire transfer receipt.” They may be able to point you to special programs that national banks sometimes overlook,” says Fortune.

FHA 203k rehab loan

Marco Santarelli

MAY 9, 2025

Other Roadblocks: Credit, Debt, and Not Enough Houses It's not just about the price and the down payment, though. Tougher Credit: After the housing crisis in 2008, banks became much stricter about who they lend money to. So many people I know have tens of thousands, even hundreds of thousands, of dollars in student loan debt.

Debt-to-income ratio

Redfin

JULY 30, 2025

Key takeaways: First-time homebuyer: Anyone who hasn’t owned a primary residence in the past three years Common first-time homebuyer qualifications: Credit score, debt-to-income ratio, down payment, income limits, employment history, purchase limits, homebuyer education Buying your first home?

Debt-to-income ratio

The Mortgage Report

JULY 14, 2025

To qualify, the borrower will need to meet the lender’s credit, income, and debt-to-income ratio (DTI) requirements. Authored By: Craig Berry The Mortgage Reports contributor With over 20 years in mortgage banking, Craig Berry has helped thousands achieve their homeownership goals.

FHA 203k rehab loan

Redfin

JULY 1, 2025

This type of arrangement allows co-borrowers to combine their income and credit profiles, which can help with loan approval or boost purchasing power. Lenders assess each applicant’s income , credit score, debt-to-income ratio, and employment history. How do you apply for a mortgage with multiple borrowers?

Debt-to-income ratio

AAOA

MARCH 24, 2025

As you qualify for a mortgage, consider the factors lenders consider, such as your credit score, credit history, debt-to-income ratio (DTI), income, and assets. Be prepared to provide documentation like bank statements and federal tax returns to verify your income sources.

Property Management

Marco Santarelli

JULY 11, 2025

This includes credit score, income, debt-to-income ratio, down payment, and the type of loan you choose. The central bank manages monetary policy by setting the federal funds rate. Although the central bank maintains its independence when making decisions. Mortgage rates don't exist in a vacuum.

Mortgages

HomeLight

JULY 24, 2025

Lenders require this documentation because it helps them determine your actual debt load and financial stability. Without a gift letter, gifted funds could be mistaken for a loan, which might change your debt-to-income ratio and affect your loan approval. What should a gift letter include?

Debt-to-income ratio

Redfin

AUGUST 5, 2025

A jumbo construction loan works like this: Application process: You, the borrower, apply for a loan through a lender and can get prequalified based on your credit history, income, cash reserves and liquid assets, and debt-to-income ratio (DTI). Ensure you have specifications and building plans in hand.

Construction

Marco Santarelli

MAY 19, 2025

I've seen this firsthand, where smaller, regional banks sometimes offer incredibly competitive rates to gain market share. Your Income and Debt-to-Income Ratio (DTI): Lenders want to see that you can comfortably afford your mortgage payments. Some focus on specific regions.

Mortgages

Redfin

JULY 31, 2025

DTI = (Gross Monthly Income /Total Monthly Debt Payments)​×100% Let’s say your total monthly debt payments are $1,500 and your gross monthly income is $4,000. DTI= (Gross Monthly Income ÷ Total Monthly Debt Payments) x 100% DTI= ($4,000 ÷$1500) X 100% DTI= 0.375 X 100% DTI = 37.5%

Loans

Redfin

AUGUST 5, 2025

They often require higher credit scores and a lower debt-to-income ratio than FHA or VA loans, but can offer more flexibility on property types. Establish a stable income and employment history : Lenders prefer to see consistent employment and a reliable income source. They often require no down payment.

Bankruptcy

Marco Santarelli

FEBRUARY 26, 2025

Pay down debt to improve your debt-to-income ratio. Lenders love to see low debt compared to your income. Don't just go with your current lender get quotes from multiple banks and mortgage companies. Q: Im thinking about refinancing. Whats the best way to get a really good rate? A: Great question!

Mortgages

Rochester Real Estate

NOVEMBER 5, 2015

Should I Go With A Mortgage Broker Or A Bank? A common question Realtors get from buyers and home owners looking to refinance is “should I go with a mortgage broker or a bank?” They cover the differences between mortgage brokers and banks, the pros and cons of each one and just as importantly, how to find a good lender.

Finance

Marco Santarelli

JULY 2, 2025

Federal Reserve's Monetary Policy : The Federal Reserve influences mortgage rates through its setting of the federal funds rate, which affects how much banks charge each other for lending. Understanding Your Financial Position : Your credit score, income levels, and debt-to-income ratio significantly affect the rates you may be offered.

Mortgages

Marco Santarelli

FEBRUARY 7, 2025

Banks are much more cautious about who they lend to, requiring higher credit scores and larger down payments. During the mid-2000s, subprime lending was prevalent, and average credit scores for approved mortgages were likely lower than post-crisis averages. 2025: Lending standards have tightened significantly since the crash.

Pre-approval

Redfin

JULY 2, 2025

Self-employed borrowers usually need at least two years of income history to qualify for a mortgage. Tip : Consider waiting until you’ve filed two years of tax returns—or explore bank statement loans or other non-traditional loan options. If you just started freelancing or gig work, it may be harder to get approved right away.

Pre-approval

Marco Santarelli

JUNE 16, 2025

Remember that these are just averages , and the specific rate you'll qualify for will depend on factors like your credit score, down payment, and debt-to-income ratio. The Fed's primary tool is the federal funds rate, which is the rate banks charge each other for overnight lending.

Mortgages

Marco Santarelli

MARCH 20, 2025

The Federal Reserve's Influence: The Federal Reserve (also known as “The Fed”), the central bank of the United States, has a powerful influence on mortgage rates through its monetary policy decisions. Debt-to-Income Ratio (DTI): Lenders assess your DTI to determine your ability to manage your debt obligations.

Mortgages

Redfin

JULY 30, 2025

Lower your debt-to-income ratio: Paying down existing debt can improve your financial profile, helping you qualify for lower interest rates. Boost your credit score: A higher credit score shows lenders you’re a low-risk borrower, which often leads to better rates.

Pre-approval

The Close

JULY 1, 2025

FHA mortgage loan Conventional mortgage loan Credit score 500 620 Income required (debt-to-income ratio) 50% 36% to 45% Minimum down payment 3.5% Income requirements When it comes to income, FHA lenders will generally allow a maximum of a 50% debt-to-income ratio (DTI).

FHA loan

Redfin

JULY 24, 2025

We’ll outline the key criteria lenders look for, including credit score, debt-to-income ratio, and home equity. Shop around: Get quotes from multiple lenders—including banks, credit unions, and online lenders — to find the most competitive rate. What is required for a mortgage refinance?

Mortgages

Norada Real Estate

JULY 2, 2025

Federal Reserve's Monetary Policy : The Federal Reserve influences mortgage rates through its setting of the federal funds rate, which affects how much banks charge each other for lending. Understanding Your Financial Position : Your credit score, income levels, and debt-to-income ratio significantly affect the rates you may be offered.

Mortgages

Marco Santarelli

MARCH 6, 2025

The central bank even started to hint at potential rate cuts. Many buyers today are also banking on the idea of refinancing down the road. Do you have a solid down payment, good credit, and comfortable debt-to-income ratio? In 2024, we saw a bit of a breather.

Mortgages

HomeLight

APRIL 23, 2025

Heres where you might find one: Banks and credit unions: Many large banks and regional credit unions offer bridge loans. The cost and approved amount of these loans will vary based on factors such as home equity levels and credit scores , debt-to-income ratios , and preexisting borrowing relationships.

Debt-to-income ratio

Marco Santarelli

MAY 2, 2025

Remember, the rate you ultimately get will depend on your individual credit score, income, debt-to-income ratio, and other factors. Get quotes from multiple lenders banks, credit unions, and online lenders. Small Loan Amounts: The rate might only apply to smaller-than-average loan amounts.

Mortgages

Norada Real Estate

JUNE 6, 2025

Remember, your actual rate will depend on your unique financial situation , including your credit score, income, debt-to-income ratio, and the size of your down payment. This is a benchmark interest rate that banks charge one another for overnight lending.

Mortgages

Redfin

JULY 9, 2025

Standard pre-approvals (1-3 Business Days) Traditional lenders, like banks and credit unions, usually take 1 to 3 business days to process a pre-approval. Income and employment history: Pay stubs, W-2s, or tax returns. Debt-to-income ratio (DTI): Your monthly debts compared to your income.

Pre-approval

Marco Santarelli

JUNE 9, 2025

Income: Lenders want to see that you have a stable income to repay the loan. Debt-to-Income Ratio (DTI): This is the amount of your monthly income that goes toward paying debts. But in September, the central bank announced a first rate cut of 0.50 A lower DTI is preferable.

Mortgages

Marco Santarelli

JUNE 18, 2025

You'll find regional banks and credit unions that focus on specific states. Take the time to compare offers from multiple lenders – banks, credit unions, and online mortgage brokers. I've seen firsthand how localized factors can impact the rates offered to borrowers. The level of competition in your state directly influences rates.

Mortgages

Redfin

JUNE 27, 2025

Banks and mortgage lenders: Many offer first-time buyer incentives, including reduced rates, special loan terms, or access to grant programs. To find current income limits, check your state’s Housing Financing Agency (HFA) website, which can be found on the National Council of State Housing Agencies site.

Debt-to-income ratio